Re: Tescos coming down under?
 

The only time we saved money using Costco in the UK was when we bought loo rolls and cans of coke but it meant we drank far more coke than was healthy so it wasn't a saving at all. :lol:

Re: Tescos coming down under?
 

:confused:

I don't think that Starbucks is comparable to Tesco.

Re: Tescos coming down under?
 

Oh I don't know. Starbucks is crap and Tesco's is too (imo anyway) :lol:

Re: Tescos coming down under?
 

I was a member of Costco in the UK for 7 years before I came here (wish I'd been a member sooner) everything they sell, from food, to clothes and household goods is top quality, never had a compaint, and saved heeps on buying in bulk, just need to divide and put in freezer or have a spare couple of cupboards. I will be there like a shot when they open in Sydney, and all those that were members in the UK thought they were good, (judging by the car park especially Christmas it was a nightmare to park) I've never heard anyone ever say they were "crap". Utter rubbish IMO.

Re: Tescos coming down under?
 

My experience of Tesco in the UK is that the quality, freshness, range and prices are better than Waitrose, Sainsbury and the rest.

I am sure that Tesco in Australia would put a thunderflash under the "Big Two" - something needs to. However, they would probably leave the management to Australians, and it would slide downhill - this seems to happen to a lot of multinationals who think that the natives will have the same ethos as their home countries.

Re: Tescos coming down under?
 

arhh

the she`ll be right factor ;)

Re: Tescos coming down under?
 

Competition forces prices down,an economic fact?How do you come to that conclusion.

Is economies of scale not the opposite of competition,or do we all have a race to the bottom to see who can make the least profit.

Should these big stores be split up and a small shop is put at the end of each street they will have cheaper prices than Coles or WOW,I think not.


To explain the simple maths again,$1 per week from the population will produce $1.114 billion profit per year,economies of scale,not to mention the bulk buying discounts these large businesses have. the large logistics operations they have which a corner shop will never have.

Now focus on the corner shop,every street has one.Because there are a lot we imagine they will fiercely compete to reduce prices.Suppose a street has 300 people in it,the owner is going to sell the articles at a profit of 90 cents per person because competition reduces prices,he/she will work all hours for a profit of $270 per week ,I think not.All that will happen is they go out of business because they cannot make a living.

Learn from history or forever repeat the same mistakes

The mighty Wal mart has released 1st quarter earnings,from memory around $5.5 million for 3 months.They make more in 3 months than Colers and Wow make in a year.

Looking at the numbers,Wal mart have a market of around 370 million (US and UK).they can afford to make 90 cents per person profit.Should they come to OZ then in round numbers a market of 390 million,really big economis of scale.

You will notice that your weekly shopping has dropped in price slightly.Or you will notice the $35 billion a year profit they make,and off we go again.

They must be ripping us off,if we had more competition we would have cheaper prices,an economic fact?

Geordie down under.

Re: Tescos coming down under?
 

Precisely.

Re: Tescos coming down under?
 

Geordie - could you explain your logic?

Re: Tescos coming down under?
 

You don't see the logic amazing.What do you not see?


Take standard oil as an example,it was split up.The seven companies created are far bigger than standard oil ever was.Some of them had to merge, to once again have economies of scale.

If you don't want to see the logic you never will.


On the same subject when the next reporting season starts (April) and 3 of the big banks report what will probably be a good increase in profit the cries will start all over again,ripping us off,competition will reduce prices etc.

As i have explained before a bank operates on around 1% nett profit.A $500 billion loan book will produce $5 billion profit,as a rough rule of thumb.To explain it easier 3 houses can be bought for $1mill.Average mortgage,a bank may carry a $300 billion mortgage loan book.Is it reasonable to suggest a bank will have 900,000 mortgages in a small population.from this 300 billion the profit is obciously $3 billion,being 1%.

As i have said before we imagine these companies make huge profits,we are sure these companies make huge profits because everybody repeats the same thing.

Do we buy shares in these companies,sit back and collect the large dividends that flow from huge profits.

Or do we spend a lifetime avoiding this wealth and complaining about the huge profits that we have imagined these companies make.

99% of people will avoid wealth.

See what they want to see ,hear what they want to hear..

Re: Tescos coming down under?
 

By Crap I mean overpriced in comparison to the same things you can get elsewhere.... travelling to Port Melbourne to see Electricals you can get at the same price or cheaper locally seems a waste of effort.

Re: Tescos coming down under?
 

I couldn't see whether you are for or against big chains. It seemed a bit incoherent.

Welcome to the forum, BTW <g>

Re: Tescos coming down under?
 

I do not shop at Costco, do not believe I should have to pay to belong etc almost forcing people to go there.

Aldi I like their fresh stuff, do not like any of their other products. Bought dog food for my dogs and they would not eat it.

We mainly buy fresh food, not a lot of tins etc and find if you shop that way its way cheaper.

If we want packaged meals we either buy take away or eat out and I think most Aussies do this hence Tesco type supermarket would not do it here.

Safeway and Coles tried the ready made meals a couple of years ago and they were soon on special as not popular. Lets face it if we are not cooking we are not cooking even in the mircrowave :D

Re: Tescos coming down under?
 

What about ASDA WALMART? thats cheaper than Tesco !!
I am hoping to move to Victoria this year and the only thing I will miss about UK is cheap shopping!!:(

Re: Tescos coming down under?
 

IMO I think you are attempting to mask the debate with 'pure' economic theory Geordie, you conveniently use the term 'competition' to take it to the end of that particular spectrum (a shop on every street corner). Competition amongst the 6 or 7 big supermarket players in the UK has driven down prices (if you don't believe me, then ask anyone who lives there). You then almost labour back on to my point by going on about the big banks and how they can make their profits (are there not half dozen of them?) Where do the competition authorities fit into your argument? I bet the ACCC and their equivalents in other countries aren't just there to ensure monopoly/duopoly (Some might say WW's & Coles here) or Cartels, can carve us all up? BTW, I am an Economics grad, with hons and Dip for my efforts, so I do understand your basic theory, just don't quite agree with the purism of the argument.
No offence intended.